SOURCE: Digital Lifestyles Group

October 05, 2005 06:00 ET

Digital Lifestyles Group Continues Efforts to Resolve Outstanding Debt

WALNUT, CA -- (MARKET WIRE) -- October 5, 2005 -- Digital Lifestyles Group Inc. (OTC: DLFG) today announced that it has successfully negotiated approximately 25% of the Company's current outstanding debt by settling with certain creditors for substantially reduced amounts. While financial details were not disclosed, the settlements to date reflect the Company's ongoing efforts to resolve its outstanding liabilities and continue with its business operations.

Andy Teng, Chairman and Chief Executive Officer, stated: "We are pleased to announce that within the past 60 days, and since the announcement of our anticipated merger with Protron Digital Corporation, a substantial portion, reflecting approximately 25% of our outstanding debt, has been successfully negotiated and resolved to date. These efforts reflect our commitment to the future of Digital Lifestyles Group and getting the Company back on solid financial footing. Further, we will continue our efforts to not only address the outstanding liabilities of the Company but also to seek financing, both of which are both integral to our ongoing operations and our anticipated merger with Protron Digital Corporation."

About Digital Lifestyles Group Inc.

Digital Lifestyles Group Inc. is a computer and consumer electronics company that designs, manufactures and markets digital lifestyle products. More information about Digital Lifestyles Group will be made available upon request.

Statements in this news release which are not purely historical facts are forward-looking statements, including statements containing the words "believe," "estimate," "project," "expect" or similar expressions, and statements such as those related to the ability of the Company to continue to work with existing creditors to resolve currently outstanding liabilities, the ability of the Company to negotiate settlements with existing creditors, the expected use of the proceeds from the private placement, the expected future commitment to provide additional funding, the ability of the Company to continue to seek additional funds and the terms and conditions of such funding, the potential value of the proposed transaction to current and future shareholders, the ability of the Company to complete the expected merger transaction with Protron, and the prospects related to the consumer electronics industry. These statements are made within the meaning of Section 27A of the Securities Act of 1933, as amended, and the provisions of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are based upon information available to Digital Lifestyles Group Inc. on the date of this release. Any forward-looking statement inherently involves risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the ability for the Company to raise sufficient funds to operate the business going forward, successful implementation of its restructuring plan, including the ability to generate positive cash flow from operations and the ability of the Company to satisfy its existing creditors, the ability of the Company to consummate the transaction, which is subject to a number of contractual, conditions, such as shareholder approval and execution of a merger agreement satisfactory to the Company, the general acceptance of the Company's products in the marketplace, the ability of the Company to compete with its competitors and other risks detailed in the company's periodic report filings with the Securities and Exchange Commission. There can be no assurance that any estimations or projections set forth in this release can be obtained. By making these forward-looking statements, the company undertakes no obligation to update these statements for revisions or changes after the date of this release. Readers are cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • Investor Contact:

    Andy Teng
    (626) 625-5705